July 31, 2002CAFIS® Comprehensive Card Settlement Network- Issuer Authorization Proxy Service for multi-brand IC card settlement is launched
First domestic multi-brand (Visa, MasterCard, domestic card) service commences to 13 card companies -
NTT DATA Corporation
NTT DATA's comprehensive card settlement network, CAFIS (See Note 1) has accommodated IC cards, such as credit and debit (cash) cards since April 2002. Starting August 5, 2002, CAFIS will become the first in Japan to launch the Issuer Authorization (See Note 3) Proxy Service handling multiple brands of credit cards (Visa, MasterCard, as well as domestic cards [See Note 2]).
Issuer authorization is a form of authorization unique to IC card settlements. At the time of settling a transaction in which a credit card with embedded IC chip is used, authorization consists of verifying whether the card is genuine. The card companies must always make that determination when an IC card transaction takes place. By using the Issuer Authorization Proxy Service, a card company is able to handle settlement of credit transactions involving the use of IC cards without having to spend the time and incur the costs of building its own issuer authorization system. On August 5, 2002, service will begin to 13 card companies.
Background
Compared with a traditional magnetic-stripe card, an IC card features high security, as well as expandability, since it is a medium with multiple features and large capacity. Because of that, many organizations, especially financial institutions, are considering or already beginning to issue IC cards on a full scale.
The major domestic card companies are already issuing credit cards with embedded IC chips. By the end of 2002, the number of cards issued is expected to reach a cumulative total of 23 million [See Note 4]. Starting August 5, terminals that accommodate IC cards will be installed in the stores (about 100 terminals are expected to be placed throughout the nation in August 2002), and they have begun to be used in processing.
When a transaction is conducted using an IC card, in addition to the information contained on a magnetic-stripe card, information unique to the IC card is transmitted for the purpose of authorization. Thus, to be able to settle IC card transactions, one not only needs a terminal capable of reading IC cards, but also a processing center and network consisting of the card companies, financial institutions, stores, and other parties. The card companies especially have a need to build a system for issuer authorization.
Details of the Service
At the processing center of the card company that issued the IC card, not only is authorization conducted for transactions made using traditional magnetic cards, but also the type of card authorization processing that is special to IC cards (determination of whether the card is authentic) is carried out. In the Issuer Authorization Proxy Service, it is CAFIS that performs card authorization on behalf of the card company (See Attachment 1).
In most cases, the Japanese credit card companies issue several brands of cards. When a card company issues multiple brands of IC credit cards, the company must authenticate each of those brands. CAFIS' Issuer Authorization Proxy Service accommodates multiple brands, that is, the international brands, Visa and MasterCard, as well as cards that can be used only in Japan. It is the first multi-brand authorization proxy service offered in Japan.
By using the Issuer Authorization Proxy Service, the card companies are able to quickly process IC card transactions at the same level as those of traditional magnetic cards, but without spending the time and incurring the costs of initial system construction. They are thereby able to minimize system costs at their processing center resulting from the adoption of the IC cards. If a card company were to individually build their own processing center systems for issuer authorization of multiple brands, the costs would range from some tens of millions to hundreds of millions of yen. Yet by using the CAFIS authorization proxy service, their issuer authorization processing costs are only 100,000 yen per month per brand.
Usage Fee
100,000 yen per month per brand
Future Deployment
The CAFIS network already handles IC cards. Starting August 5, processing of IC card transactions will commence as the installation of IC card terminals begins and the Issuer Authorization Proxy Service starts. By availing themselves of the CAFIS Issuer Authorization Proxy Service, the card companies will be able to process IC cards quickly and at low cost.
To provide an IC card solution for the stores, the NTT DATA INFOX (See Note 5) terminal has been made available as the nation's first to accommodate all brands of IC cards (See Note 6).
With the launching of this service, NTT DATA's CAFIS now provides comprehensive IC card support: 1) Electronic messaging for IC card transactions, 2) Proxy for the credit card company's host computer functions through the Issuer Authorization Proxy Service, and 3) providing stores with INFOX (See Note 5) terminals. Beginning October 2002, IP-based data transmission will be provided, and the connection fee for dedicated digital 64kbps lines will be reduced. (See Note 7)
As a result, a comprehensive network for card settlements providing total support for the card companies, financial institutions, and stores will be achieved, and that will serve to expand the market for IC card settlements and increase the opportunities for the use of the cards. The network will also provide users with easy to use, speedy, and low-cost settlements. As a result, the number of transactions is targeted to exceed 100 million per month during fiscal 2002.
(See Attachment 2)
Card Companies Utilizing the CAFIS Issuer Authorization Proxy Service (Beginning August 5, 2002)
Aeon Credit Service Co., Ltd.
Kyodo Credit Service Co., Ltd.
Credit Saison, Ltd.
JACCS Co., Ltd.
Takashimaya Credit Co., Ltd.
DC Card Co., Ltd.
Toyota Finance Corp.
Nippon Shinpan Co., Ltd.
Pocket Card Co., Ltd.
Sumitomo Mitsui Card Co., Ltd.
UFJ Card Co., Ltd.
UC Card Co., Ltd.
Life Co., Ltd.
Notes:
1. CAFIS: Abbreviation for Credit And Finance Information System. Launched February 1984. A service for relaying online transaction information consisting of credit information (credit checks, sales volume, etc.) and information on fund movements (debit service, convenience store cash dispensing services, etc.) among credit card companies, financial institutions, corporations, member stores and others. http://www.cafis.jp/
2. Domestic cards: Cards usable only within Japan, which do not carry the Visa, MasterCard, or other international brand names.
![[Figure] Domestic cards and Cards with international brand](/en/media/2002/img/073100_01.gif)
3. Issuer authorization: This technology has been newly adopted for the purpose of authorization for IC card settlements besides authorization for traditional magnetic cards, to prevent their improper use. For online transaction processing, data created using an encryption method determined in advance by the card company or card brand is appended to the transaction data and transmitted to the card company. The card company analyzes that data and confirms the authenticity of the card. It then responds to the store where the card has been used, attaching encrypted data created using the same encryption method. The chip on the card analyzes the data and confirms the authenticity of the host computer of the card company (the issuer of the card).
4. Quoted from General Survey of IC Cards 2001 (issued by C-media Co., Ltd., recommended by the Japan IC Card System Application Council)
5. Abbreviation for INtegrated Terminal FOr Card Transaction EXchange. This is a multi-function terminal that flexibly handles the increasing diversity of settlement methods such as credit, debit, and IC cards. INFOX connects to INFOX-NET, the data processing center operated by NTT DATA. Service started in April 1999.
6. One INFOX terminal enables the use of IC cards specified by the international-brand card companies (Visa, MasterCard, JCB, Amex, Diners) and domestic IC cards unique to Japan. (As of July 31, 2002, testing is underway for Amex certification.) With the INFOX terminal, J-Debit (debit card service provided by the Japan Debit Card Promotion Association) and IC points can be utilized, and there is no need for the stores to have different terminals for each card brand and function.
7. Starting October 2002, CAFIS will support IP (a general-purpose protocol used as standard on the Internet and other networks). That will enable an increase in the length of transaction data resulting from the use of IC cards, it will speed up processing, and it will lighten the burden on the user of building a system for connecting to CAFIS. In addition, the fee schedule for digital 64kbps CAFIS connections will be revised, and connection fees will be set in accordance with actual transaction volume.
http://www.nttdata.co.jp/release/2002/052300.html
*CAFIS, INFOX, and INFOX-NET are registered trademarks of NTT DATA Corporation.
*The names of other products and services listed in this document are the trademarks or registered trademarks of their respective companies.
Attachment 1
Attachment 2
Issuer authorization is a form of authorization unique to IC card settlements. At the time of settling a transaction in which a credit card with embedded IC chip is used, authorization consists of verifying whether the card is genuine. The card companies must always make that determination when an IC card transaction takes place. By using the Issuer Authorization Proxy Service, a card company is able to handle settlement of credit transactions involving the use of IC cards without having to spend the time and incur the costs of building its own issuer authorization system. On August 5, 2002, service will begin to 13 card companies.
Background
Compared with a traditional magnetic-stripe card, an IC card features high security, as well as expandability, since it is a medium with multiple features and large capacity. Because of that, many organizations, especially financial institutions, are considering or already beginning to issue IC cards on a full scale.
The major domestic card companies are already issuing credit cards with embedded IC chips. By the end of 2002, the number of cards issued is expected to reach a cumulative total of 23 million [See Note 4]. Starting August 5, terminals that accommodate IC cards will be installed in the stores (about 100 terminals are expected to be placed throughout the nation in August 2002), and they have begun to be used in processing.
When a transaction is conducted using an IC card, in addition to the information contained on a magnetic-stripe card, information unique to the IC card is transmitted for the purpose of authorization. Thus, to be able to settle IC card transactions, one not only needs a terminal capable of reading IC cards, but also a processing center and network consisting of the card companies, financial institutions, stores, and other parties. The card companies especially have a need to build a system for issuer authorization.
Details of the Service
At the processing center of the card company that issued the IC card, not only is authorization conducted for transactions made using traditional magnetic cards, but also the type of card authorization processing that is special to IC cards (determination of whether the card is authentic) is carried out. In the Issuer Authorization Proxy Service, it is CAFIS that performs card authorization on behalf of the card company (See Attachment 1).
In most cases, the Japanese credit card companies issue several brands of cards. When a card company issues multiple brands of IC credit cards, the company must authenticate each of those brands. CAFIS' Issuer Authorization Proxy Service accommodates multiple brands, that is, the international brands, Visa and MasterCard, as well as cards that can be used only in Japan. It is the first multi-brand authorization proxy service offered in Japan.
By using the Issuer Authorization Proxy Service, the card companies are able to quickly process IC card transactions at the same level as those of traditional magnetic cards, but without spending the time and incurring the costs of initial system construction. They are thereby able to minimize system costs at their processing center resulting from the adoption of the IC cards. If a card company were to individually build their own processing center systems for issuer authorization of multiple brands, the costs would range from some tens of millions to hundreds of millions of yen. Yet by using the CAFIS authorization proxy service, their issuer authorization processing costs are only 100,000 yen per month per brand.
Usage Fee
100,000 yen per month per brand
Future Deployment
The CAFIS network already handles IC cards. Starting August 5, processing of IC card transactions will commence as the installation of IC card terminals begins and the Issuer Authorization Proxy Service starts. By availing themselves of the CAFIS Issuer Authorization Proxy Service, the card companies will be able to process IC cards quickly and at low cost.
To provide an IC card solution for the stores, the NTT DATA INFOX (See Note 5) terminal has been made available as the nation's first to accommodate all brands of IC cards (See Note 6).
With the launching of this service, NTT DATA's CAFIS now provides comprehensive IC card support: 1) Electronic messaging for IC card transactions, 2) Proxy for the credit card company's host computer functions through the Issuer Authorization Proxy Service, and 3) providing stores with INFOX (See Note 5) terminals. Beginning October 2002, IP-based data transmission will be provided, and the connection fee for dedicated digital 64kbps lines will be reduced. (See Note 7)
As a result, a comprehensive network for card settlements providing total support for the card companies, financial institutions, and stores will be achieved, and that will serve to expand the market for IC card settlements and increase the opportunities for the use of the cards. The network will also provide users with easy to use, speedy, and low-cost settlements. As a result, the number of transactions is targeted to exceed 100 million per month during fiscal 2002.
(See Attachment 2)
Card Companies Utilizing the CAFIS Issuer Authorization Proxy Service (Beginning August 5, 2002)
Aeon Credit Service Co., Ltd.
Kyodo Credit Service Co., Ltd.
Credit Saison, Ltd.
JACCS Co., Ltd.
Takashimaya Credit Co., Ltd.
DC Card Co., Ltd.
Toyota Finance Corp.
Nippon Shinpan Co., Ltd.
Pocket Card Co., Ltd.
Sumitomo Mitsui Card Co., Ltd.
UFJ Card Co., Ltd.
UC Card Co., Ltd.
Life Co., Ltd.
Notes:
1. CAFIS: Abbreviation for Credit And Finance Information System. Launched February 1984. A service for relaying online transaction information consisting of credit information (credit checks, sales volume, etc.) and information on fund movements (debit service, convenience store cash dispensing services, etc.) among credit card companies, financial institutions, corporations, member stores and others. http://www.cafis.jp/
2. Domestic cards: Cards usable only within Japan, which do not carry the Visa, MasterCard, or other international brand names.
3. Issuer authorization: This technology has been newly adopted for the purpose of authorization for IC card settlements besides authorization for traditional magnetic cards, to prevent their improper use. For online transaction processing, data created using an encryption method determined in advance by the card company or card brand is appended to the transaction data and transmitted to the card company. The card company analyzes that data and confirms the authenticity of the card. It then responds to the store where the card has been used, attaching encrypted data created using the same encryption method. The chip on the card analyzes the data and confirms the authenticity of the host computer of the card company (the issuer of the card).
4. Quoted from General Survey of IC Cards 2001 (issued by C-media Co., Ltd., recommended by the Japan IC Card System Application Council)
5. Abbreviation for INtegrated Terminal FOr Card Transaction EXchange. This is a multi-function terminal that flexibly handles the increasing diversity of settlement methods such as credit, debit, and IC cards. INFOX connects to INFOX-NET, the data processing center operated by NTT DATA. Service started in April 1999.
6. One INFOX terminal enables the use of IC cards specified by the international-brand card companies (Visa, MasterCard, JCB, Amex, Diners) and domestic IC cards unique to Japan. (As of July 31, 2002, testing is underway for Amex certification.) With the INFOX terminal, J-Debit (debit card service provided by the Japan Debit Card Promotion Association) and IC points can be utilized, and there is no need for the stores to have different terminals for each card brand and function.
7. Starting October 2002, CAFIS will support IP (a general-purpose protocol used as standard on the Internet and other networks). That will enable an increase in the length of transaction data resulting from the use of IC cards, it will speed up processing, and it will lighten the burden on the user of building a system for connecting to CAFIS. In addition, the fee schedule for digital 64kbps CAFIS connections will be revised, and connection fees will be set in accordance with actual transaction volume.
http://www.nttdata.co.jp/release/2002/052300.html
*CAFIS, INFOX, and INFOX-NET are registered trademarks of NTT DATA Corporation.
*The names of other products and services listed in this document are the trademarks or registered trademarks of their respective companies.
Attachment 1
Attachment 2
- News Releases.
- The services, prices of products and services, specifications, telephone numbers, etc. for inquiries and other information included in news releases are the data available on the day of the release. This information may be changed at any time without notice. In certain circumstances, due to various risks or unexpected occurrences, actual results may also be different from the plans or projections in news releases.
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